The New economic paradigm is Grace.  Grace as in the forgiveness/cancellation of the Debt over hang that general equilibrium theory seduced both Finance and the individual into. Grace as in the free gift of a universal dividend which will span and interpenetrate Time so the the individual is freed from the compulsive coercion but not the option of employment. Grace as in the cancellation/reversal/repentance from systemic price and asset inflation, and in fact the deflation of prices via a macro-economically derived discount of retail prices (the retail product of home builders in association with financial institutions after all is a mortgage on a home) that is equally as graciously rebated back to the retailer so that such a system fits seamlessly within a transformed profit making system. Wisdom is integration and the process thereof, and Grace is its pinnacle concept and experience…no matter whether one calls it Grace, satori or the Atman. Let us finally integrate economic theory with Wisdom/Grace. It’s either that or the continued top down domination by the Debt/Loan ONLY monopolistic paradigm of Finance and the inevitable chaos, war and destruction that has been our non-integrative history.

You’re correct the environment and the economy are continuously becoming, and so what we need is a philosophy based on both Being and Becoming. Actually what Economic theory requires is a theory based on Wisdom and its pinnacle concept and experience of Grace. Not in any pre-scientific dogmatic sense, but again in the sense of Wisdom and the concept of Grace…..Grace being the complete and continuous integration of Space, Time and Self Awareness/Consciousness. Wisdom as in integrative and as in continuously looking back and forth between oneself and the environment and also back and forth within oneself…and then acting in a rational and ethical way regarding it all. This is Wisdom and its pinnacle concept of Grace and what our educational and spiritual curricula….and most urgently what our economics curricula must consist of, be about and attempt to integrate within their subject matter.

What our Educational and Spiritual curricula….and most urgently what our economics curricula must consist of, be about and attempt to integrate within their subject matter.

Correct Ellen. But respectfully, replacing one monopoly with another isn’t an integration and hence by definition not actually wise. Even if you saved a lot of costs by nationalizing the TBTF Banks, that isn’t going to solve the macroeconomic scarcity of actually available total individual incomes in ratio to TOTAL costs/prices. And when the economy is still not stabilized because there is no dividend and no retail discount, and innovation and AI also ever more rapidly and increasingly destroy aggregate demand regressive forces will hydra like resurrect the monopoly powers of Private Banking. The monopoly paradigm of Debt and Loan ONLY must also be balanced by monetary grace the free gift in consumer finance.

And a Public central bank operating truly in the interests of the individual as above is thus even more powerfully a necessary aspect of the solution.

Patrick:  But we mustn’t allow the perfect to be the enemy of the good.

Nationalizing the Fed and allowing the government to create
debt-free money could solve about 80% of the USA’s economic
problems.
That’s good enough to be going on with!  – and it’s so simple that
anyone can understand it!

Me:  The quote attributed to Voltaire actually doesn’t apply and here’s why. A monopoly, whether private or public…isn’t the Good. We’re going to sign off on politicians deciding who is credit worthy, or which infrastructure program and by what corporation it’s going to be built…not to mention whether the system is going to be at all functional as innovation and AI increasingly destroy incomes?

No, free the individual first! That’s not hard to understand, and if the individual is free…actually free they’ll be much better able to make objective and rational judgements about their political and policy options…because they won’t be able to be coerced by lack of money…and because  then they’ll actually have options!

Transformation first! Rational and ethical regulation and reform…immediately afterward!

Tyranny is tyranny and freedom is freedom. There’s no equivocating with the former and no compromising with the latter. The system is tyrannical not because it’s not perfect, but because temporally/in physical universe terms it is cost inflationary and paradigmatically, that is ideationally…it is utterly unbalanced without a new paradigm of monetary grace for the individual.

Monopolies, particularly ideational/paradigmatic financial monopolies, like Debt and Loan only, are fundamentally contradictary and have no place in free market profit making economic systems. They don’t even have a place in non-free market and nonprofit making systems because even without profit or its taxed and centralized manipulation, if the system still creates a greater flow of costs/prices than it does a flow of incomes with which to liquidate those costs and prices…it is not free and inevitably “progresses” toward absurdity and tyranny…exactly like profit making systems will without a new and balancing idea/paradigm. A third alternative made possible by integrating monetary gifting into the system and thus balancing it is the answer. Without confronting that we only tread water and, (and I know this is completely unintentional by everyone here) like politicians monetarily or ideologically dominated by Financial interests, we show a mistaken preference for comfort, compromise and relief…instead of freedom. I’m sorry, but I must speak truth to power.

In reply to John’s post about the age of Central Banking being over:

John and Ellen,

That is precisely correct as Steve Keen has correctly re-discovered that the money system and the creation of money is endogenous, that is PRIVATE Banks create our money first…and then look to find/borrow reserves on the repo markets…or when that system broke down during the crisis in 2008 PRIVATE finance looked to the central bank and its lackey the US government to create/supply the necessary reserves. There is no better case for the justification of Public Banking as a structurally balancing force to the disequilibrating monopoly of PRIVATE Banking/Finance.

And there is of course the deeper questions to be resolved and answered, that is: Why, most deeply, did the crisis occur at all, and what must be done to correct and prevent it from occurring again?

And the answer to that is: On an ongoing basis more costs and hence prices are created by the system than individual incomes actually available to liquidate those costs/prices. And the only valid economic solution to that problem is the distribution of a free and costless gift of money/individual income. That idea, reality and concept is the new paradigm Steve Keen himself is calling for,…..and PUBLIC CENTRAL Banking guided by and mandated to calculate and distribute the new paradigm of monetary grace the free gift to individuals (and businesses via the rebate of their discounts)…is precisely the entity NECESSARY to make and keep the system in balance, equilibrium and flow.

Public Banking and Social Credit are actually a reflective monetary Duality because Banking creates our money costlessly and Social Credit is the new paradigm of monetary grace the free and costless gift that is necessary to balance the disequilibrium created by excess costs and also the ongoing destruction/cancellation of money. Integrated, the truths and necessary applications of both will result in the correct and classical policy goals of economic and monetary theory, namely Balance, Equilibrium and Flow

[ (Public Banking X Social Credit) = Balance, Equilibrium and Flow ]

An integrated Duality Within a Trinity-Unity…The Wisdom/Grace/Trinity/Consciousness….AND monetary and economic theory and policy Formula

Isn’t the alleged irrelevance of public debt costs very similar to the argument that depreciation reduces the costs of business’ necessity to replace equipment, facilities etc. …which on the one hand is true, but at the same time…ongoingly, if they are smart and frugal as competitive businesses are…and probably want to survive they still have to come up with all of the money to replace said equipment etc., anyway, the costs of which they will of course ongoingly pass on to the consumer. And throughout the process the individual is not credited with any additional income so that those additional costs/prices actually can be liquidated. In other words the individual gets no consideration or monetary help….which is the point of Social Credit and the exact reality and whole problem. And if they don’t pass on those costs in an ongoing fashion it’s probably bye, bye business when the time comes that they have to finance all of the costs of replacing everything. Businesses have it hard too. Not so hard as the individual, but with A + B the ever present and onerous reality, they suffer under it as well. That’s why businesses, particularly small to medium ones, are natural allies with consumers, for the implementation of Social Credit.

Balance, Equilibrium and Flow are the three major aspects/components of both the concept of grace and the logical and classical goals of economic theory and policy.

They exactly reflect each other, and yet ongoing monetary grace is missing/absent from economic theory and policy, and despite the ongoing fact of monetary scarcity in ratio to costs/prices. Hence monetary grace the free gift is the solution to that most basic problem and necessary as policy.

Cutting edge thinking by certain economists that have de-bunked general equilibrium theory is correct. The macro economy is in fact in a radical state of disequilibrium. The final two questions disequilibrium theorists need to ask themselves are: Why does this disequilibrium exist? and What needs to be done about it? The answer to the first question has always been with us the same as the new paradigm of Grace the free gift has always been there, waiting to be discovered. The answer to the second question is: So that we can have both true individual freedom and a free flowing system…and so a truly ethical system as well. That’s actually three “things”. Keep that in mind as you read further on in this book. But back to the first question

Allegedly the most basic concept of physics and the cosmos is entropy. There may be a concept that includes and encompasses even that, but that is a discussion for another time. The analogous most basic concept of the micro economy is cost. If there are inherently more costs continuously created by the economic and monetary systems themselves, than there is money with which to liquidate those costs…then the system left to its own unfettered operations…cannot be in equilibrium. This fact is revealed in the cost accounting data and their relationships to each other…in the “books” of each and every enterprise in any economy…and is enforced by the convention of cost accounting which says that: “All costs must go into price.”  This convention is in force for each and every enterprise…and at all times. Thus it is not only a ubiquitous micro-economic factor….it is a constant and dynamic macroeconomic factor as well. The factor of Cost rules the micro economy and points at the problem that macro-economics must solve.

So if costs/prices inherently exceed money created to liquidate those prices, and cost  is the monetary/money and economic/price reflective concept of entropy, what is its counter balancing non-entropic concept that will establish balance, equilibrium and flow?

Monetary grace, the free gift of money.